It can take years of hard work to build a successful business, and so exiting that business can be a very difficult decision for an owner to make. For others who have an exit strategy in place finding a buyer may be difficult, particularly in certain...
A letter before action demands payment from the debtor within 14 days failing which court action will be commenced. The pre-action protocols which are the court’s guidelines to pre-action conduct provide that a debtor should be given a reasonable time to respond and that as a general rule 14 days will be regarded as a reasonable time. The practice direction containing the protocol may be found at: pre-action conduct and protocols. This protocol affects business to business debts unless the debtor is a sole trader.
Failure to comply with the protocol can lead to costs consequences later if a claim is disputed.
Our debt recovery statistics show that in 70% of cases where a letter before action is issued, court proceedings have been avoided. Speak to us on 0203 816 9303.